I was looking recently at profit margin (defined as operating income divided by revenue) for the combined 2018 AmLaw 100 firms; and noticed that at 40.03%, it was at its highest value in almost 30 years. In 1987, the American Lawyer first published the full AmLaw 100 firms ranking and reported a profit margin of 40.14% – a level which has not been exceeded since. This unusual finding prompted me to embark on a deeper review of the profit margins of the AmLaw 100 (Log Into Legal Compass To View the Am Law 100).

Three Profit Margin Shapes in 30 Years

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